definition and meaning

What is a Future Settlement?

What is a Future Settlement?

Future Settlement Funding Definition

Future Settlement Funding Is A Litigation Financing Model.  Basically, Litigation Financing Companies Risk And Purchase A Possible Settlement On A Lawsuit That They Believe Will Definitely Win In Court. 

They Provide The Plaintiff With A Cash Advance That Is Smaller Than The Expected Amount Settled In Court.  Sometimes  The Turn Around Time Is As Fast As 3-4 Days For The Cash Advance.

Plaintiffs Can Take Advantage Of This Service For A Number Of Different Reasons.  An Example Is If They Cannot Wait For The Settled Amount And Need The Money Up Front. 

Usually, They Need It To Pay The Bills Incurred During The Litigation Process Or Medical Bills.  Instead Of Taking Out A Loan With A Higher Interestt, They Can Opt To Sell Their Future Settlement And Be Able To Use The Cash Up Front.

Pre-Settlement Funding


Pre-Settlement Lawsuit Funding Is Also A Non-Recourse Cash Advance.  The Plaintiff Takes The Cash Advance And  In Return They Have To Pay It When The Lawsuit Wins Or Settles.

But how does Pre-settlement lawsuit funding work?

The Lawyer Is Contacted By The Finance Company And Asks For All Information Regarding The  Case.  

They Will Then Asses This Information And Speculate On What The Likely Outcome Is Or Possible Settlement.  They Give The Advance To The Plaintiff According To That Assessment.

The Injured Plaintiff Is Not Obligated To Repay The Advance If The Lawsuit Loses.  At The Same Time, If The Settlement Or Winnings Are Smaller Than The Advance,  They Do Not Have To Pay Higher Than What The Lawsuit Gets.  Legally, These Advances Are Never Called Or Characterized As Loans.

When and why should an injured plaintiff use this option?

A Sample Case Of When A Pre-Settlement Lawsuit Funding Is A Good Option Is If The Litigation Might Possibly Drag On For Years.  If The Injured Person Is Unable To Work And Produce Income, They Do Not Have A Way Of Surviving Or Getting By.  At The Same Time The Lawyers Are Paying The Cost. 

Also The State Bar Associations Prohibit Lawyers From Loaning To Plaintiffs Because It Is A Possible Conflict Of Interest.  In Most Cases, Taking The Cash Advance Is The Only Option To Keep Paying The Bills.

Personal Injury Lawsuit

What Is a Personal Injury Settlement?

Personal Injury Settlement allows Victims Hurt From Negligence Or Harmful Acts By Another Person To Recover Damages Against The Guilty Party.

The Amount Recovered In A Personal Injury Settlement Can Vary Depending On The Nature And Extent Of The Injury, The Amount Of Economic Damages Such As Lost Wages Or Medical Bills Incurred, Or The Amount Of Time That The Injury Is Expected To Last. 

In The U.S, It Has Been Estimated That 16% Of Children Hospitalized As A Result Of An Unintentional Injury Will Suffer Some Form Of Permanent Disability.

Personal Injury Settlements May Be A Result Of A Vehicle Accident, Medical Malpractice, Or A Workplace Accident. If The Guilty Party Is Insured Then The Plaintiff Will Need To Notify The Insurance Company.

In Most Circumstances They Will Issue A Cheque For The Damages Up To The Limit Of The Individual Policy. If The Guilty Party Is Uninsured, However, Then The Process Of Recovering Damages Becomes Much Harder. In This Situation It May Be Necessary To Seek An Attorney Who Specializes In Collecting Judgments.

Personal Injury Settlement Attorney’s Fee

 Is Usually Negotiated Before The Case Begins. In California The Fee Is Typically 40% If The Case Is Litigated Through Trial Or Arbitration. The Fee Will Be Based On The Retainer Agreement Between The Plaintiff And The Lawyer Handling The Case.

Some Retainer Agreements Stipulate That The Fees Are Calculated On The Gross Settlement Before Medical Bills Are Paid Whereas Some Are Paid Out On The Net Amount. If Your Case Wins Then A Structured Settlement Will Be Negotiated.

 Where By The Plaintiff Will Receive Regular Monthly Payments, Rather Than A One Off Lump Sum. However, It Is Also Possible To Sell Structured Settlement Payments To An Annuity Buyer And Receive A Cash Lump Sum.

A Brief Information On Personal Injury Lawsuits:

There Are Two General Types Of Personal Injury Lawsuits: Negligence And Intentional Torts

  • Negligence Cases Means That The Party Who Caused Harm Did Not Intend To Do So But Their Careless Actions And Neglect For Safety Laws Resulted In Injury To Another. Common Negligence Cases Are Automobile Accidents, Medical Malpractice Or Slip And Fall Accidents Due To Poor Maintenance Or Design.
  • Intentional Torts Are Cases When A Person Intended To Commit A Harmful Act To Another Person.  An Example Is A Child Molestation Case, Assault And Battery, Defamation, Child Abuse.

If You Or A Loved One Suffers From An Injury Cause By Another Person, Talk To A Lawyer And See If You Have The Merits For A Winning Case.

Lawsuit Cash Advance


Lawsuit Cash Advances Should Be Used A Last Resort When In The Middle Of A Litigation Process And You Find Your Self Out Of Funds To Pay The Bills And Feed Your Family.  Lawsuit Cash Advances Are Never Considered As A Loan.  Other Descriptions Of Your Cash Advance Could Be: Investment Or Venture Capital.

The Injured Person Has No Obligation To Pay The Advance If The Case Loses And That Is Why It Is Not A Loan Technically.  The Injured Will Keep The Lawsuit Cash Advance Regardless Of The Out Come Of The Case.

Also, Because Of The Nature Of This Advance Funding, It Provides Encouragement For Plaintiffs To File For Careless And Pointless Lawsuits.  Lawsuit Funding Companies Are Usually Very Careful In Picking Plaintiffs To Award An Advance To. 

Usually The Plaintiff Has To Be In Dire Need Of The Cash Advance, They Also Have To Have A Very Strong Case And Almost Certain That The Case Will Result In Victory And A Substantial Amount Of Money.  Their Fees Are Usually Very High Also.

For The Injured, If You Really Must Resort To Lawsuit Cash Advance, Do Your Research And Talk To Various Companies, Compare Their Rates And Find A Company With Best And Lowest Fees.

Non-Recourse Advances


Future Settlement Funding Is Considered A Non-Recourse Advance. This Means That The Law Firm Is Putting Its Funds At Risk By Paying For The Legal Costs Of Your Court Case Upfront.

If You Win The Case, The Law Firm Receives The Fees According To The Financial Terms Of Your Future Settlement Agreement. If You Lose The Case, The Money Used Upfront To Support Your Case Is Not Repaid.

Every Agreement Is Unique And Will Depend On The Specifics Of Your Case As Well As The Considerations Of Your Law Firm And/Or Attorney. Every Law Firm Will Have Different Criteria They Use To Determine Not Only The Merits Of Your Case, But The Chance That They Will Receive Compensation As Well.

Future Settlement Help


If You Are In The Middle Of A Lawsuit That You Could Take Long Time To Resolve Or You Are Suing A Larger Company For Their Wrong Doing And Clearly Can Afford To Stall Their Payment, You May Not Have A Choice But To Go To A Future Settlement Funding Financial Institution And Get A Cash Advance On Your Settlement.

Future Settlement Help How It Works

  • Finance Companies Will Review Your Case And Speculate If You Have A Good Case And A Better Chance Of Winning The Lawsuit.
  • They Will Then Advance You The Money But It Is Based On A Few Different Factors, What You Currently Need, The Amount You Expect To Win, And The Merits Of Your Lawsuit.
  • Now, Because It Is A Non-Recourse Advance, You Are Not Required To Repay The Advance If You Lose The Case. This Is Why, Getting A Cash Advance Comes With Very Expensive Fees. It Is A Big Risk On The Investor.
  • Different Companies Do Not Have Similar Cost Structures, So Make Sure You Talk To A Few Different Finance Companies And Compare.There Are Some Companies That Actually Offer An Assessment With No Application Fees Or Credit Checks.  However, It Is Wise To Understand And Read All The Fine Print.

Why should you hire an attorney?

You May Be Suffering From An Injury Because Of Another’s Action, Whether Its Neglec Or Intentional.  Most People And Insurance Companies Refuse To Take Responsibility And Settle Fairly.  If This Is The Case You May Need To Consult An Experienced Attorney.  They Will Know How To Negotiate Your Case And What You Are Claiming.

What kind of Fees Should I Expect To Pay an Attorney?

In Your Search For An Attorney, You Will Find That They Almost Always Take Cases In A Contingent Fee Basis.  This Means That They Only Get Paid If You Win.  They Will Pay The Fees Up Front And If It Results In Victory, They Take A Percentage.  Sometimes The Percentage Can Be Pretty Big But Even After The Attorney Gets Paid, You Can Still Come Home With A Fair Amount For Your Injury.

How Can I Find an Attorney?

Like Looking For A Doctor Or Dentist, It Is A Good Idea To Get Referrals And Recommendations From Friends, Colleagues And Family First.  This Way You Are Likely To Find A Lawyer You Can Trust. 

There Are Bar Organizations Than Can Provide Referrals To Lawyers Who Are Most Qualified To Handle The Case.  But You May Need To Pay A Fee. There Are Also Number Of Lawyer Directories Online.

What Are Some Important Questions I Need To Ask Before Hiring?

  • Have They Handled Cases Similar To Yours And Whether They Won Or Lost?
  • Will The Case Be On A Contingent Fee Basis?
  • How Long Can They Expect The Case Be Resolved?
  • How May Other Lawyers Will Work On The Case?
  • Will They Be Active And Able To Return Phone Calls Quickly?
  • Do They Go To Trial Often? How Often?
  • Are They Willing To Go To Court If You Do Not Want To Settle?
  • What Should You Do To Have A Better Case?
  • Have They Ever Been Suspended From Malpractice Of The Law?
  • Are They Taking Continuing Education Courses Or Teach It?

Do I Have The Right to Terminate an Attorney if I do Not Like Their Work?

Yes You Definitely Have This Right.  Make Sure It Is In Writing Before Signing.  Usually, If You Fire A Lawyer, They Are Still Entitled To A Small Percentage Of Your Winnings If You Win A Case.  Consult With Your New Lawyer To Settle The Details If This Is The Case

What Should I Do if There is a Conflict? 

If A Dispute Arises Between You And Your Lawyer, Your State Bar Association Usually Offer Dispute Resolution Services.  You Can Also File A Complaint With Your State If You Feel That Your Lawyer Is Being Unethical

Top 5 Questions To Ask About Your Future Settlement

Is My Future Settlement A “Non-Recourse” Advance?

Yes. This Means That If They Lose Your Case, You Will Not Have To Pay Any Of Their Fees.

What Are Some Of The Fees I Can Expect To Pay When Getting A Cash Advance?

Every Finance Companies Vary. Make Sure You Talk To A Few Different Ones And Compare The Fees.

How Long Would It Take To Get The Funds?

The Time Frame Varies Within Each Company Also.  Some Have A Turn Around Time As Fast As 24 Hours Of Approval.  Others Can Take 3-4 Days.

Do I Have To Sell The Entire Expected Settlement?

A Lot Of Times, You Can Sell Your Entire Settlement Or Just Portions Of It.  It Depends How Much You Currently Need And How Much You Expect To Get.

Does The Advance Affect The Attorney’s Fees?

Usually It Does Not.  The Finance Companies Profits Are Taken From The Gross Percentage Of What Is Expected.